It's completely situational to each person, but if it will cashflow and the profits from a sale can't be easily used on something else that will make you more money it can be a good route to follow.

Two, the natural hard wood floors are protected so if I decide to sell the property in five years, I can just take up the vinyl easily and reveal the hardwood floors for the actual sale.

Their payment is $1,080 and the house would easily bring $1500-1600 per month rent.

Therefore if you can find some deals at wholesale prices you'll easily a find an end-buyer for your property. 

Others get their license so they can pocket that 3% more easily.

@Mike DymskiYou are absolutely right, Mike, in regards that the quote about IRR Investors was meant as a effect so that there is an understanding that the two are different and implies different Markets and Investment needs.The following is for the readers (not Mike Deymski only).I will say that there is another reason why those that do have the ability to Invest using IRR valuations  (in other words, they don't REALLY need the cashflow but would like to have it) DO NOT simply because they have not spent the time (and I would say it may take months to years) to truly understand the Calculation and how it works.It's the most comprehensive calculation you can have and requires you to do a pro-forma 10 year projection.The problem I find with a lot of BPer's is that they easily dismiss IRR because it's either too complicated and sophisticated that the newbie will need to spend time to learn it before jumping into Real Estate Investing.My personal opinion is that if you truly love Real Estate Investing and are truly motivated, you will eat, sleep and dream about Real Estate.

I threw dozens of questions at both of them that they answered easily.  

They won't look like new floors, but they will look nice and if they get some damage (within reason) you can more easily deal with it yourself.

That could easily produce $1K net monthly cashflow for you plus the other benefits of real estate: appreciation, loan paydown (by tenant), tax benefits (paper losses), and inflation profiting (inflation erodes the debt).

The asking price is 2.1M and each house will easily go for between 1.8-2M.